Robert Graham said 'we are disappointed that our £40m step-change investment that would have benefited the Scottish economy, as well as the whole Scottish dairy farming industry, will now not go ahead' (Image: Nick Ponty)

The boss of a dairy company has slammed the Scottish Government over a decision to refuse a proposed development which it said could have delivered 1,425 jobs and a £65.3m annual economic boost.

Graham’s the Family Dairy said it was “extremely disappointed” by the decision made by the minister for Local Government and Housing to dismiss a planning appeal over a development which would have included 600 homes and infrastructure on land at Airthrey Kerse in Stirling.

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Following a two-year appeal process, minister Kevin Stewart decided that the proposed development, which included a new dairy facility, was not in line with the new Local Development Plan for the area which aims to set out the best locations for new homes and businesses.

Graham’s said that had the minister approved the proposed development, 150 new affordable homes would have been delivered along with infrastructure improvements and 500 new full-time, on-site jobs at the dairy for the local economy.

The dairy group said the plan would have generated a £65.3m gross value added per annum into the Scottish economy and created a total of 1,425 jobs across the country through the single largest investment in the nation’s dairy industry in a generation.

Graham’s managing director Robert Graham said: “We are extremely disappointed by the minister’s decision which appears to place more importance on continuing to protect a failed Local Development Plan process than supporting the delivering of much needed affordable homes, infrastructure and creating full-time jobs within the city and Scottish dairy sector.

“For a Government that talks of its commitment to growing the Scottish economy, prioritising the rural and food and drink sectors as well as tackling the housing shortfall in Scotland, this decision by the Planning Minister sends a clearly contradictory message.

“As a family business which has grown from 45 to almost 700 employees over two decades, we are disappointed that our £40m step-change investment that would have benefited the Scottish economy, as well as the whole Scottish dairy farming industry, will now not go ahead.”

The third-generation family dairy business – in partnership with Mactaggart & Mickel Homes – first submitted the planning application for the development which encompasses 600 houses including 150 affordable units, a new primary school and public park in 2014.

Mactaggart & Mickel director Andrew Mickel said: “This is a huge disappointment and a surprising decision by the Scottish Government which has publicly stated that economic prosperity is at the heart of its vision for Scotland.

“It’s also terrible news for the thousands of people who are currently on a waiting list for a house in Stirlingshire, and a bitter blow for families looking forward to a new primary school, neighbourhood centre and public park.”

A Scottish Government spokesperson said: “Ministers carefully considered this application and its economic and housing benefits.

"However they accepted the independent planning reporter’s view that these benefits do not outweigh the loss of a significant area of sensitive greenbelt land and upheld Stirling Council’s original decision to reject the planning application.